Does a sponsored worker need a UK bank account?
No. All payments to sponsored workers must be made into the worker's own bank account, but that account can be in the UK or overseas. A new arrival who has not yet opened a UK account can be paid into their own overseas account in the meantime.
What payment methods are allowed?
Payments must go into an account in the worker's own name. Never pay a sponsored worker in cash: the Home Office is likely to revoke your sponsor licence if you do. Pre-paid cards such as FOREX are acceptable, but you must be able to evidence the payments you have made onto the card. Cheques must be paid into the worker's own bank account.
Keep the evidence
The Home Office checks pay through HMRC records and compliance visits. Keep payslips and be ready to show that payments reached the worker's own account at the salary stated on their CoS.
Does accommodation matter?
There is no immigration rule requiring a sponsored worker to have a particular type of accommodation, so staying in a hotel, including for an extended period, is not a compliance issue in itself. The worker should keep their address up to date on their UKVI account, and you should keep their contact details current in your records.
Government guidance: Workers and Temporary Workers: guidance for sponsors part 3